The United Auto Workers union’s retiree health-care fund will own 55 percent of Chrysler LLC in exchange for cutting in half the automaker’s $10.6 billion cash obligation to the trust, people familiar with the matter said.One of two things will result from this. The 'new' Chrysler will be bled dry, or a certain union is going to get an up close and personal look at how unrealistic their demands on business are. I'm putting a larger wager on the former.
Under the terms of the contract, the trust would get representation on the company’s board of directors, said two people briefed on the deal, who asked not to be named because the matter is private.
Wednesday, April 29, 2009
Choking the Golden Goose